The Central Bureau of Investigation (CBI) has booked seven individuals in a case related to digital currency Ponzi schemes (an investment fraud that pays existing investors with funds collected from new investors), for allegedly promising high returns involving crypto currency transactions exceeding Rs 350 crore, sources said.
The sleuths of the federal probe agency have accordingly conducted at 10 locations across seven states and Union territories in this connection including Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamilnadu and Rajasthan.
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They have seized several incriminating digital evidences and recovered cash amounting to Rs 34 lakh, while digital virtual assets worth approximately 38,414 US Dollars in the form of crypto currency wallets have also been found.
The CBI has registered a case under relevant sections of law against seven accused individuals (who are allegedly running separate organised cyber crime modules), and are based in Delhi, Hazaribag, Bathinda, Ratlam, Valsad, Pudukkottai and Chittorgarh.
It was alleged that accused persons, acting in criminal conspiracy, have been actively floating various fraudulent schemes, promising high returns based on crypto currency investments.
According to the probe agency officials, they are also accused of allegedly promoting, promising, disseminating false and deceptive information to entice investors into such unregulated deposit schemes, which operate without requisite approvals from regulatory authorities such as the Reserve Bank of India (RBI).
It has also been revealed during the CBI’s probe that the schemes were being promoted through multiple social media groups, while it came to light after analysis of bank account transactions and crypto currency wallets that the illegal proceeds from these schemes were being converted into crypto to obscure their origin.
Over a span of two years, these accounts and wallets witnessed transactions exceeding Rs 350 crore, while the victims were being allegedly defrauded under various pretences, such as online loans, online lucky orders, UPI frauds, and internet banking scams.
Investigation in this regard is continuing further, the officials said.
